Sovereign debt levels are rising among both developing and developed countries, under the disastrous impact of the COVID-19 pandemic. The pandemic has plunged the world into the worst recession in 90 years, reversing development gains and raising the spectre of a another “lost decade”. According to the Financing for Sustainable Development Report 2021 (FSDR 2021), more than a third of emerging market economies are at high risk of fiscal crises and over half of least developed and other low-income countries are currently in or at high risk of “debt distress.”
Against this background, the Konrad-Adenauer-Stiftung, in cooperation with UN DESA, has organised a digital discussion on “Debt crisis and debt relief: The way forward to a sustainable future in the Global South”.
Following a brief presentation of the findings and recommendations of the FSDR 2021 on debt and debt sustainability, the discussion aimed to explore avenues of how to address the growing debt vulnerabilities in developing countries. Given the urgent need in the developing world to strongly invest in the SDGs, it is imperative to review the international debt architecture and to create a more responsible and transparent framework for a sustainable and resilient future.
Watch the full digital discussion below: